The Ukrainian stock market continued to perform in the sideways trend last week, with Kyiv-listed equities seeing only a moderate increase despite MinFin’s impressive USD 3bn sovereign bond placement, which was 3.5x times oversubscribed. On the other hand, the ongoing wide interest in Ukraine’s bonds might eventually transform into attention to Ukrainian equities as well.
Meanwhile, a kind of flip side to the successful Eurobond placement could be a slowdown in the country’s reform agenda. Previously, the government was forced to show real reform progress in order to get IMF support. In particular, the pension system’s overhaul will be an immediate test for the authorities to demonstrate whether the IMF program remains on track.
The UX index edged up 0.6% to close at 1131 points. Raiffeisen Bank Aval (BAVL), which is the best performing blue-chip this year, finished at 27.80 kopecks after adding 1.1%. CentrEnergo (CEEN) tested the support level of UAH 11, showing no substantial move in any direction. Motor Sich (MSICH) ignored the scandal over news that the company’s controlling stake was secretly sold to a Chinese group, rising 1.3% to UAH 2575.
In London trading, Ferrexpo (FXPO) saw an additional correction from its resistance line at GBp 310, declining by 6.5% to GBp 286 per share. In Warsaw-listed Ukrainian stocks, Astarta (AST) was hit hard after the Prosecutor General’s office raided the company’s head office over alleged tax evasion. Although the charges were dropped last week, the stock remains down by some 12% since the raid was reported on Sept 6. Low-liquidity Agroton (AGT) has slid by around 25% since the start of the month despite the company improving its financial results in 1H17.
The hryvnia continued its traditional early-autumn, with the currency edging down by 0.4% against the dollar last week to close at 26.28 UAH/USD.
POLITICS AND ECONOMICS
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STOCKS IN THE NEWS
- Investigation Shows China’s Skyrizon Owns 56% Stake in Motor Sich
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